Help your child learn more complex concepts, like earning, managing and saving money, into practice. Kids need to earn money consistently in order to learn how to manage it. Many experts suggest teaching them to save for goals by earmarking funds along these lines: a third for spending, a third for savings and a third for donating to charity. As your kids get older, you can assign a list of things for them to buy (that you will no longer cover), such as video games. Be careful about tying allowance to regular chores, though—you don't want your child thinking she should be paid to contribute to the household. If she slacks on regular duties, like feeding the dog or cleaning her room, try "fining" her a set amount or taking away TV or computer time or cell phone privileges. Want to encourage a self-starter? Let your kid earn bonus cash by doing extras such as washing the car.